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In a market hot with investors, some brokers have warned against ignoring first home buyers who are increasingly desperate to get a 'foot in'.
In both The Adviser's recent Elite Business Writers of the Year and (soon to be released) Young Broker of the Year, brokers who specialised in FHBs had done so with great success to their bottom line.
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Mortgage Choice broker Keith Caine said that while dealing with FHBs involves more work, the long-term benefits from having them as clients are well worth it.
"A lot of brokers tend not to want to deal with first home buyers because they do need their hands held a little bit more than the majority of customers," he said.
"There is a little bit more work involved with first home buyers, but what a lot of brokers forget is that the majority of first home buyer loans are high loan-to-value, which means that they [first home buyers] won't be going anywhere for a while."
Mark Polatkesen from Loan Gallery in Melbourne said it is always good to get clients at the start of their investment cycle.
"It's generally the first point of contact they have with lending, and you'll find over time that if you do the right thing by them, they're going to come back to you," she said.
"I find that some of the more seasoned buyers are a little harder to convert if they've got an existing relationship with another broker or lender."
David Leotta from Aussie's Newtown franchise in Sydney said it would be "silly" for brokers to rule out first home buyers as potential clients.
"I feel that first home buyers are the ones who generally need help from a broker, so they genuinely appreciate the help we offer," he said.
"A lot of the time, they're the most loyal clients – they'll come back to you when they're ready to upgrade, invest or refer."
[Related: First home buyers want new mortgage options]
